Korean Politician Pops the Chip Vibe. Sterling Under Pressure.

The overnight buzz in Seoul centered on a proposal from a senior Korean politician to levy a special dividend or tax on AI‑generated profits. Investors interpreted the move as a potential revenue stream for the government, sending SK Hynix and Samsung shares into sharp volatility. At the same time, the broader semiconductor sector continued its AI‑driven rally, with optical‑connect firms Lumentum and Coherent jumping more than 13% and Qualcomm climbing over 8%. The surge reflects growing demand for high‑bandwidth, power‑efficient links that feed next‑generation data‑center GPUs.

Across the Channel, sterling faced renewed pressure as Labour leader Keir Starmer’s cabinet reshuffle loomed. Market participants see no clear successor, amplifying the UK’s twin‑deficit concerns and pushing 10‑year yields above 5%. The GBP/USD pair slipped toward the 135‑penny level, while the dollar‑yen pair tested the 158 resistance tied to Japan’s Ministry of Finance intervention threshold. A stronger dollar, bolstered by higher U.S. Treasury yields, compounded the currency weakness, creating a feedback loop between political risk and foreign‑funding costs for the UK.

Commodity markets reacted to the same macro backdrop. WTI crude reclaimed the $100 barrier and Brent rose past $106, lifting energy‑related equities and feeding higher inflation expectations ahead of the U.S. April CPI release. Copper and silver surged to record highs, an unusual move given the concurrent rise in yields that typically depress precious metals. Meanwhile, the Fed’s next chair nomination and the possibility of tighter monetary policy add another layer of uncertainty. Investors are therefore balancing AI‑centric earnings growth against rising input costs, currency volatility, and the looming inflation data.